Glaxosmithkline's Marketing Strategy for Requip: A Case Study in Product Lifecycle Management

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Case Details:

Case Code : MKTG173
Case Length : 23 Pages
Period : 2002-2007
Pub Date : 2007
Teaching Note :Not Available
Organization : GlaxoSmithKline, Plc.
Industry : Pharmaceutical
Countries : USA, Europe

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

GSK was formed in 2000 by the merger of two research-based pharmaceutical companies - Glaxo Wellcome and SmithKline Beecham. Headquartered in Brentford, London, UK, the company has a rich history that dates back to the 18th century. There were four main companies in the history of GSK: Burroughs Wellcome & Company, Glaxo Laboratories, Beecham, and SmithKline & French. With this merger, GSK became the largest pharmaceutical company in the world. But as of 2007, it was the world's second largest pharmaceutical company after Pfizer, Inc. GSK had a diverse product portfolio covering anti-infectives, central nervous system (CNS), respiratory, gastro-intestinal/metabolic, oncology, and vaccines products...

From 'Putting Life Back into Hands' to 'Restless Legs'

GSK felt that Requip held much promise in the treatment of RLS (Refer to Exhibit IV for a brief note on RLS). It hit upon the idea of marketing Requip for RLS after observing that some doctors were prescribing the drug off-label to treat this disorder. On March 31, 2003, GSK started the RLS promotion with press releases about a research paper that was presented at the 55th American Academy of Neurology meeting at Honolulu, which described the early trial results of using Ropinirole for the treatment of RLS...

Marketing Blitz follows FDA Approval

On May 5, 2005, the FDA approved Requip for the treatment of moderate to severe RLS. GSK said that it was the first treatment approved for RLS in the US. Prior to this, in June 2004, GSK had been successful in getting the drug approved for RLS in France. After gaining marketing approval for Requip for RLS in the US, GSK adopted a multi-million dollar, multi-pronged marketing strategy. In addition to personal selling to doctors through its sales force and advertisements in medical journals, GSK launched a DTC advertising blitz targeted at consumers...

Marketing Adartrel in Europe

Requip was marketed under the brand name Adartrel in Europe. On April 3, 2006, Adartrel became the first RLS treatment to receive a positive decision from the European Commission . Andrew Witty, President of Pharmaceuticals Europe, GSK, said, "RLS can have a significant negative impact on quality of life for patients due to the chronic inability to fall or stay asleep, which can lead to daytime exhaustion, difficulty concentrating, and reduced interest in normal activities. Data show that Adartrel is effective in improving RLS symptoms thereby reducing sleep disturbance and improving quality of life...

Requip Sales Rides on Restless Legs

Requip was launched for RLS in the US in the second quarter of 2005. In October 2006, the WSJ said that Requip was on track to post sales of US$500 million in 2006 and it was one of the fastest growing brands in GSK's product portfolio. By the first quarter of 2006, the number of weekly new prescriptions for Requip in the US was four times that at the time of launch. In 2005, the sales of Requip were 156 million, a growth of 34 percent over 2004. In 2006, the sales of Requip were 268 million, a growth of 74 percent over 2005...

 Excerpts Contd...>>


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